One of the most vibrant 9-day festival is right around the corner! This much anticipated festival is known for the fervor, energy and endless celebrations. Navratri is amongst the most popular and loved festivals of India.
Navratri is also considered as an auspicious time to invest, especially as Dhanteras, Akshay Tritiya, Muhrat trading, Navratri or Dussehra around the corner. However, with increasing market volatilities and reduced equity profits, investing in safe investment options is more important than ever.
Fixed deposits are one of the most reliable investment avenues, in times of such market fluctuations. According to the data received by the Reserve Bank of India, the total number of FDs in banks sums up to Rs. 35,68,435 crores. Moreover, the fixed deposits bought from Non-Banking Financial Company (NBFC) is not accounted.
Although the standard source of FDs used to be banks, with increasing benefits and growing interest rates, NBFCs have scaled down investments in banks. Here is investment guidance to make auspicious investments on this Navratri.
Why invest in Fixed Deposits?
Fixed deposits are a way to compound a lump sum of money in banks or NBFCs for a predefined tenor. Following are some of the features of FDs to help you make a good investment:
Flexible Tenor
Fixed deposits can have flexible tenors ranging from as low as seven days to ten years. The interest rates and returns depend on the tenor of your FD.
High-Interest Rates
NBFCs like Bajaj Finance provide fixed deposit with the highest interest rates (up to 8.85%) compared to standard banks and other financial providers.
Fixed Returns
It is an often-believed myth that NBFCs do not have much credibility as compared to banks. However, Bajaj Finance is accredited with ICRA'S MAAA and CRISIL's FAAA rating. ICRA is an Investment Information and Credit Rating Agency of India Limited, and CRISIL is Credit Rating Information Services of India Limited. With the highest possible ranking by them, Bajaj is a credible source for all your investments.
Higher Interest Rates for Senior Citizens
Senior citizens enjoy a lot of financial benefits in India. One of the biggest advantages is comparatively higher FD interest rates (over 0.35%).
Minimum Deposits
In banks, the minimum deposit for an FD is just Rs. 1000. While with Bajaj Finance, the minimum FD deposit is Rs. 25,000.
Laddering
You can maintain liquidity in your funds by using laddering of FD. In this process, the lump sum amount you wish to invest in FD is divided into some parts. You can opt for multiple FDs at a time with different tenors. This will ensure liquidity in your income, and you can opt for regular intervals of FD returns.
Loan against FD
You can avail loan against FD and use up to 75% of the money accumulated in FD. In such a case, your FD would be considered as the collateral. Additionally, the interest rates on loan against FD is lower compared to the interest rates on a standard loan.
Fixed Deposit Calculator
You no longer need to visit your financial service provider to check the status of your interest rates or returns. You can easily calculate the returns and FD interest rates using the online FD calculator. You can easily access this calculator from the website of your financial company.
Be it for shopping, or for any other celebration, fixed deposit is one of the safest investment options for both your short-term and long-term goals. Although, you must make sure to check your eligibility criteria for a loan against FD with your choice of financial provider to avoid loan rejections. You can easily apply for FD from any bank or NBFC with a few clicks and by submitting some necessary documents. This festive season, secure your future by opening a Fixed Deposit account.
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